CC 2017-10-24_09g Resolution_Removing Deed Restrictions
MEMORANDUM
TO: CITY COUNCIL
FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
HEATHER WHITHAM, CITY ATTORNEY
SUBJECT: CONSIDERATION OF RESOLUTION DELEGATING AUTHORITY TO
THE CITY MANAGER OR HIS DESIGNEE TO REMOVE DEED
RESTRICTIONS REGARDING THE USE OF ACCESSORY DWELLING
UNITS
DATE: OCTOBER 24, 2017
SUMMARY OF ACTION:
Adoption of the proposed Resolution will authorize the City Manager to remove deed
restrictions previously recorded against properties containing accessory dwelling units,
when requested by the property owner.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There are no fiscal impacts to the City by delegating authority to the City Manager to
remove deed restrictions.
RECOMMENDATION:
It is recommended the City Council adopt the Resolution delegating authority to the City
Manager or his designee to remove deed restrictions stipulating that accessory dwelling
units cannot be sold apart from the primary residence and, within Single-Family zoning
districts, the owner of the property must occupy one of the dwellings located on the
property.
BACKGROUND:
At the October 10, 2017 City Council meeting, the Council introduced an Ordinance
amending Section 16.52.150 of the Municipal Code regarding accessory dwelling units
in order to comply with certain changes in State law. In its consideration of the
Ordinance, the Council deleted Subsection 16.52.150.C.10. which required that a deed
restriction be recorded against the title of property containing an accessory dwelling unit
prior to issuance of a building permit. That deed restriction stipulated that accessory
dwelling units cannot be sold apart from the primary residence and, within single-family
zoning districts, the owner of the property must occupy either the primary residence or
the accessory dwelling unit. In addition to deleting the deed restriction requirement, the
Item 9.g. - Page 1
CITY COUNCIL
CONSIDERATION OF RESOLUTION DELEGATING AUTHORITY TO THE CITY
MANAGER TO REMOVE DEED RESTRICTIONS REGARDING THE USE OF
SECONDARY UNITS
OCTOBER 24, 2017
PAGE 2
Council directed staff to return with an agenda item at the October 24th meeting that
would authorize the City Manager to remove deed restrictions from the title of real
properties that previously were encumbered by such a deed restriction. Accordingly, the
attached Resolution which delegates such authority to the City Manager or his designee
has been prepared for Council consideration. The Resolution will take effect upon the
effective date of the Ordinance.
ANALYSIS OF ISSUES:
Property owners have complained that these accessory dwelling unit deed restrictions
encumbering their property affects the value and salability of the property, primarily
because the property cannot be rented. Property owners have also complained that the
existence of the accessory dwelling unit deed restriction can significantly affect their
ability to get financing to acquire a property. Accessory dwelling units cannot be
separately sold from the underlying lot regardless of the existence of the deed
restriction, pursuant to the provisions of the Subdivision Map Act.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt a Resolution delegating authority to the City Manager or his designee to
remove certain deed restrictions regarding accessory dwelling units;
2. Do not adopt the Resolution; or
3. Provide other direction to staff.
ADVANTAGES:
Authorizing the City Manager to remove accessory dwelling unit deed restrictions will
increase the value of a property currently encumbered by a deed restriction, will
enhance the ability of the purchasers to finance the property and will provide flexibility
for the property owner to rent the property to third parties.
DISADVANTAGES:
Eliminating the deed restriction stipulating that the owner of the property must occupy
either the primary residence or the accessory dwelling unit may affect the single-family
character of the property and the surrounding neighborhood, as it may lead to more
rentals and related impacts to the neighborhood, real or perceived.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 9.g. - Page 2
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE DELEGATING AUTHORITY TO
THE CITY MANAGER OR HIS DESIGNEE TO REMOVE
CERTAIN DEED RESTRICTIONS REGARDING
ACCESSORY DWELLING UNITS
WHEREAS, the City of Arroyo Grande has required deed restrictions be recorded
against properties containing an accessory dwelling unit stipulating that the accessory
dwelling unit cannot be sold apart from primary residence and, within single-family
zoning districts, the owner of the property must occupy either the primary residence or
the accessory dwelling unit; and
WHEREAS, by way of Ordinance No. ____, said deed restriction requirement set forth
in AGMC subsection 16.52.150.C.10 was determined to be unnecessary by the City
Council and was deleted from the Municipal Code; and
WHEREAS, the Council further directed that a process be established enabling the
removal of such deed restrictions on properties previously encumbered when so
requested by the property owner and that the authority to remove such deed restrictions
be delegated to the City Manager or his designee.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo
Grande as follows:
1. The City Manager or his designee is hereby delegated the authority to remove
deed restrictions previously recorded against properties containing an accessory
dwelling unit stipulating that the accessory dwelling unit cannot be sold apart
from the primary residence and, within single-family zoning districts, the owner of
the property must occupy either the primary residence or the accessory dwelling
unit, pursuant to former AGMC subsection 16.52.150.C.10, at the request of the
property owner.
2. This Resolution shall take effect on the effective date of Ordinance No. .
On motion of Council Member ______, seconded by Council Member ________, and by
the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this ____ day of ______, 2017.
Item 9.g. - Page 3
RESOLUTION NO.
PAGE 2
___________________________________
JIM HILL, MAYOR
ATTEST:
___
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
___________________________________
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
___________________________________
HEATHER K. WHITHAM, CITY ATTORNEY
Item 9.g. - Page 4